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Nude RTD drives Corby Q1 sales
Pernod Ricard’s Canadian affiliate, Corby Spirit and Wine, saw revenue rise by double digits in the first quarter of fiscal 2025 due to the purchase of ready-to-drink (RTD) brand Nude.
Based in Ontario, Corby is the second largest marketer and distributor for spirits and wines in Canada, and is majority owned by Pernod Ricard, which distributes its products in the region.
For the three months ending 30 September 2024, Toronto-headquartered Corby saw sales soar by 11% to CA$65.1 million (US$46.5m). Canadian brand Nude contributed revenue of CA$4.9m (US$3.5m) for the first quarter (Q1).
However, excluding Nude (which Corby acquired in April 2024), the Canadian business saw organic Q1 revenue increase by only 3% year on year.
Nude also helped to boost Corby’s full-year financial results. The firm saw sales soar by 41% in the 12 months ending 30 June 2024, driven by Nude and Canada’s leading RTD producer, Ace Beverage Group (ABG). Corby took a 90% stake in ABG in June 2023.
Corby’s president and CEO, Nicolas Krantz, said the recent acquisitions had put the business in a position to “capitalise on the new opportunities presented from consumer demand shifts and the recent route-to-market modernisation in Ontario”.
Impact of LCBO strike
The Q1 results highlighted a “good start to the year”, Krantz added, despite the impact of the Liquor Control Board of Ontario’s (LCBO) strike in the alcohol market.
In July, approximately 10,000 union workers at LCBO staged a walkout – its first in history – over pay and the Ontarian government’s plan to make alcohol more widely available.
In Corby’s Q1 results, the company noted that the two-week-long industrial action had “significantly impacted” the overall spirits market during this period, resulting in a 1.5% drop in value in the last rolling 12 months.
Corby also said the strike had affected the RTD sector but it remained one of the fastest-growing categories in the past year, growing by 4.6%.
The Toronto-based company said it had outperformed the Canadian spirits market in value for more than two years, gaining share in most categories over this timeframe.
With its range of spirits, wine and RTDs, Corby said it had ‘outpaced the total beverage market in value growth by 150 basis points over the last 12 months’, boosted by the company’s diversified portfolio, new products, and its ‘ability to navigate the strike’.
Krantz continued: “We once again outperformed the broader spirits market in value growth during the quarter, supported by the diversity of our product portfolio, the ongoing effectiveness of our portfolio prioritisation strategy, and Corby’s excellence in sales execution.”
He also noted that the recent quarter was hit by “destocking patterns at liquor boards” and festive pre-ordering by consumers, however he expects this to normalise during the fiscal year.
Looking ahead, Krantz said the company would aim to “deliver sustainable growth and protect profitability levels”, while creating “incremental long-term sustainable value” for shareholders.
Corby’s Canadian brands include JP Wiser’s, Lot 40, Pike Creek and McGuinness liqueurs. Through its Pernod Ricard affiliation, it also distributes international brands in Canada such as Absolut, Jameson and Chivas Regal.
Pernod Ricard saw organic sales for Q1 of fiscal 2025 fall by 5.9% after double-digit drops in China and the US.
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